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Thursday, April 28, 2011

Jack Dorsey, the man who co-founded Twitter and Square, has managed to secure financial backing for his latter startup. The much-needed cash will be provided by Visa, one of the leading credit card brands. The funding comes on top of existing investments by Sequoia Capital and Khosla Ventures.

Square makes a handy dongle that turns your iPhone or Android phone into a mobile credit card reader. They hit the ground running when Apple put the device on sale on both its online and brick-and-mortar stores.

Reuters reports that Visa got a seat on Square’s advisory board although the extent of their investment remains unspecified.

The funding hasn’t changed anything in Square’s product portfolio. Furthermore, the company continues to offer their free smartphone software and the iPhone/Android dongle.

This could be the beginning of a lucrative side-business for Visa because Square targets people who need to charge clients on the spot, which includes a wide variety of professions and real-life situations.*thanks 9to5Mac*